USDA recently announced a series of changes that will make it faster and cheaper for homeowners to refinance USDA single family home loans. The changes, which took effect on June 2, 2016, apply to mortgages issued through USDA Rural Development and those where USDA has issued a loan note guarantee.

Homeowners that have been current on their mortgage for the past 12 months will no longer be required to secure an appraisal, provide a credit report, or undergo a debt-to-income calculation when they refinance for a 30-year term. These changes will save time and money. The average savings for the homeowner is around $150 per month, with some saving as much as $600 a month. Helping homeowners refinance their mortgage to reduce their monthly payments and take advantage of low interest rates will bring increased capital to rural residents and the communities where they live and work.

The streamlined rules are consistent with banking industry lending standards. These refinanced loans, like all Rural Development housing loans, meet rigorous underwriting standards and are made only to qualified borrowers.

For additional details on these changes, see page 26461 of the May 3, 2016,  Federal Register. Interested homeowners with USDA loan guarantees should contact their lender about their refinancing procedures. Oregon homeowners with USDA direct loans should contact a local Single Family Housing Specialist to learn more or to start the refinancing process.

By providing access to capital and opening up new markets, USDA Rural Development helps American businesses compete and succeed locally, nationwide, and in the tough arena of international trade. In Oregon, for example, Rural Development has awarded 130 Business & Industry (B&I) loan guarantees totaling $287.8 million between 2009 and 2015 to help rural businesses create or retain jobs.

New rules making it easier for rural businesses to qualify for USDA loan guarantees under the B&I Program went into effect on August 2, 2016. The changes allow businesses to use the investments made through the New Markets Tax Credit Program to meet the B&I Program's equity requirements. For the first time, employees of a business are also allowed to qualify for loan guarantees to purchase stock in a business by forming an Employee Stock Ownership Plan or worker cooperative.

Other improvements include:

• New loan application scoring criteria, including priority for loans to businesses that will create quality jobs, such as those with healthcare benefits;
• Reduced paperwork requirements to refinance loans;
• Strengthened eligibility criteria for non-regulated lenders (such as privately-owned finance companies) to participate in the B&I Program; and
• Expanded loan eligibility, including in urban areas, for projects that process, distribute, aggregate, store, and/or market locally or regionally produced foods.

For a complete overview of the new rules, see page 35984 of the June 3, 2016, Federal Register.

The City of Prineville in central Oregon celebrated Earth Day this year by breaking ground for the new Crooked River Wetlands. A component of the city’s wastewater system improvements funded by USDA Rural Development, along with state and local partners, the wetlands will utilize the natural environment to gradually reintroduce clean, treated wastewater into the Crooked River, reducing sediment and water temperatures.

With $5 million in funding from USDA’s Water and Waste Disposal Program, along with $3.9 million from numerous partners, the city will install new sewer main lines, upgrade the pump station, and improve the lagoon aeration system. The key feature of this $8.9 million project is the addition of 120 acres of wetlands, which will increase the plant’s capacity while eliminating the discharge of treated wastewater directly into the Crooked River. The wetlands will benefit fish and wildlife and also provide recreational opportunities through five miles of new hiking trails dotted with 13 educational kiosks developed by local school kids.

The Crooked River Wetlands exemplifies environmentally friendly growth and development. It will save Prineville $57 million over the life of the project compared with the alternative of building a new mechanical treatment plant, helping to stabilize future utility rates and support a thriving local economy, all while protecting water quality and a healthy watershed for future generations. Read more online...

In a recent visit to Oregon, USDA’s Rural Housing Service Administrator Tony Hernandez spoke at the annual Farmworker Housing Conference. Organized by Community And Shelter Assistance Corporation of Oregon (CASA of Oregon), the conference provides a venue for nonprofits, property management companies, and others involved in providing affordable housing for farmworkers and their families to learn more about new tools and resources, funding opportunities, and best practices.

“Since 2009, you all have helped USDA invest more than $289.7 million nationwide to create 3,039 affordable apartment complexes for some of the most hardworking, yet underprivileged families in the country,” said Hernandez during his remarks at the conference. “Myself and everyone at USDA Rural Development are happy to partner with you to make a real difference for American farmworkers.”

Farmworkers are vital not only to America’s agriculture sector, but also to the rural economy as a whole. Housing is frequently the first step on the road to economic prosperity for these hardworking families. Unfortunately, safe, reliable housing with affordable rent is often difficult to come by. In Oregon, there are currently 26 farmworker housing facilities supported by USDA’s Farm Labor Housing Program that provide affordable apartment homes for 890 farmworkers and their families.

Adequate infrastructure is essential for the health and prosperity of towns across rural America, but its maintenance can place a tremendous financial strain on small, rural communities. The City of Athena in northeastern Oregon recently received funding from USDA Rural Development to upgrade the town’s water system. With a $3 million loan and a $350,000 grant provided through Rural Development’s Water and Waste Disposal Program, Athena will install a new well with a control building and a new 500,000 gallon storage reservoir. The city will also replace portions of existing pipeline and install 10 fire hydrants. Overall, these upgrades will improve the system’s water pressure and fire flow capacity, enabling the city to meet the needs of its more than 1,125 residents for years to come.

USDA recently announced a new resource to help food hubs improve their financial performance. As organizations that manage the aggregation, distribution, and marketing of locally-produced food, food hubs play a key role in creating opportunities for small and midsize producers while also satisfying growing customer demand for local products.

The new report, Running a Food Hub: Assessing Financial Viability, provides modules and best practices for food hubs to maximize profits and control costs. Part of a multi-volume series published by Rural Development, the report provides technical assistance for food hubs at different stages of development. For example, it gives beginning food hubs advice on writing sound business plans, and it includes guidance on how established food hubs can expand into financially viable long-term businesses.

The number of food hubs in the U.S. has more than doubled over the course of this Administration, with more than 350 now operational around the country thanks in part to support from USDA. According to a comprehensive survey by Michigan State University, on average, each food hub supports 20 jobs and generates nearly $4 million in annual sales.